Pollution Control Tax Exemption

Air and industrial water pollution control facilities are exempt from sales, use, and property taxes in Michigan. "Facility" means any machinery, equipment, structure, any part, or accessory used for the primary purpose of controlling or disposing air or industrial water pollution. The Michigan Department of Environmental Quality (DEQ) is responsible for determining what property is eligible.

There are two separate applications for air and water pollution control, which should be submitted to the Michigan Department of Treasury for processing. As part of the process, the DEQ will review the application submitted to the Michigan Department of Treasury and local governmental units will also receive a copy of the application. Water pollution facilities should use Form 891 and air pollution facilities should use Form 3828. This certification process is used for both the sales tax and property tax exemptions. The exemptions do not take effect until approved by the state agency.